Where Can You Invest In A Recession?
Where Can You Invest In A Recession?
That seems to be the number one question on everyone’s mind these days. The stock market continues to see-saw wildly, housing hasn’t completely bottomed out yet, and companies are shedding jobs like crazy, pushing down consumer demand. So, do you stuff your money in a mattress? Do you forget about mutual funds, 401 K, any form of investing? Well, you can still invest in the stock market and in mutual funds, as long as you follow some areas that historically do well during a recession.
Commodities
There are funds out there that have a healthy percentage of stocks that deal with commodities that typically do well during a recession, or even a depression. Usually, it’s not a great bet any other time, but it can be safer than some other areas at this time. People right now are particularly fond of mutual funds that have precious metal commodities and agriculture.
Value Funds
Other mutual fund picks are those that style themselves as “value funds.” They usually are not aggressive earners, but also they typically don’t lose much either. They focus on companies that are a good value and have a solid foundation. They usually include the word “value” in their names, like the Growth-With-Value fund.
Infrastructure
A new trend is to find some mutual funds with stocks that are investing in infrastructure. This can be a good pick because of the focus on the stimulus plan to enhance infrastructure around the country. So, while it’s not going to be giving out spectacular results, it should provide a more stable investment than many other types of funds out there right now.
There’s no arguing that investing in this economic climate can give even the most seasoned investor a queasy stomach. However, if you have time to wait out the recession and need to make some decisions, there are funds that can offer an umbrella in stormy weather, at least for a short while.
